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OPEC+ panel seen not making any policy changes after unexpected output hike
Two delegates said that the top OPEC+ Ministers meeting on Saturday will not make any new changes to oil output policy. This is after this week's unexpected decision by the group to increase production further sent prices to pandemic levels. At 1200 GMT, a joint ministerial monitor committee (JMMC), or Organization of the Petroleum Exporting Countries plus allies, led by Russia will be held online. The JMMC is a group of oil ministers that includes Saudi Arabia, Russia, and other major producers. It meets about every two months, and it can make policy recommendations. On Saturday, two sources stated that no new decisions are expected to be made at the meeting. Eight OPEC+ nations unexpectedly agreed on Thursday to accelerate their plan to phase-out oil production cuts by increasing production by 411,000 barrels a day in May, instead of 135,000 bpd. This decision caused oil prices to extend steep losses. Brent crude closed 7% lower on Friday at $65.58 a barrel, its lowest level since August 2021. The decision by OPEC+ and fears of a trade war following US President Donald Trump’s announcement about tariffs this week pushed the price down. The May increase is part of a plan that Russia, Saudi Arabia and the UAE have agreed to implement in order to slowly unwind the most recent production cut of 2.2 millions bpd. This was implemented this month. OPEC+ has also agreed to cut 3.65 million bpd in other production until the end next year. This will support the market. Reporting by Olesya Almakhova, Alex Lawler and Maha El Dahan; Editing by Topra Chopra
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Russia claims Ukraine is'multiplying energy attacks' despite a US-brokered ban
The Russian defence ministry stated on Saturday that Ukraine has increased its attacks against Russian energy infrastructure. It said 14 targets were hit in the last 24 hour despite an American-brokered ceasefire. In a Telegram statement, the Ministry said that Ukraine "multiplied unilateral attacks on energy infrastructure in Russian regions using artillery and drones". The Russian government said that the strikes caused damage to the regions of Bryansk (Russia), Belgorod (Russia), Smolensk (Russia), Lipetsk (Ukraine), and Kherson in Ukraine, which it controls. I was not able to confirm the reports about the strikes. Kyiv has not made an official statement on the Russian statements, but Ukraine’s military said that it stopped its strikes on Russian energy installations on March 18, Last month, Russia and Ukraine agreed to the U.S. proposal of a moratorium for 30 days on attacking each other's infrastructure. Since then, both sides have accused each other repeatedly of breaking the agreement. The deal was part a larger diplomatic push to end the conflict by U.S. president Donald Trump, since his return to power in January. Separately, on Saturday the governor of Russia’s Volga River region Mordovia claimed that Ukrainian drones struck an industrial facility. According to media reports, the factory was located in Saransk, the capital of this region. Local officials reported that a Russian airstrike on Kryvyi Rh, Ukraine, killed 19 people including nine children. The Russian Defence Ministry claimed that it had targeted a military meeting in the city. This was a claim the Ukrainian military branded as disinformation. (Writing and Editing by Tomasz Janovski and Barbara Lewis).
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India and UAE will develop an energy hub in Sri Lanka as Delhi competes against China's influence
India's Foreign Ministry announced on Saturday that India and the United Arab Emirates had agreed to build an energy hub in Sri Lanka. This comes as New Delhi's rivalry with China in the Indian Ocean Island nation grows. The three nations signed a pact to create the hub during Indian PM Narendra Modi’s visit to Sri Lanka. This was the first time a world leader visited Sri Lanka since Anura Kumara dissanayake became president in September. New Delhi and Colombo are working to strengthen their ties, as India's southern neighbor recovers from the severe financial crisis that was triggered in 2022. During this time, India gave $4 billion of financial assistance. The agreement signed on Saturday increases New Delhi's competitiveness with China. Sinopec, the state-owned energy company of China (600028.SS), has agreed to build an oil refinery worth $3.2-billion in Hambantota, Sri Lanka's southernmost port city. Vikram Mihiri, Indian Foreign Minister, told reporters in Colombo that the energy hub will be built in Trincomalee - a strategic city in Sri Lanka's eastern province and a natural port - by building a multiproduct pipeline. It may also involve the use of an old tank farm from World War Two, which is partly owned by a Sri Lankan subsidiary Indian Oil Corp. Misri stated that the UAE was a strategic partner of India in the energy sector and as such, it was the ideal partner to work with for this first-ever exercise in the region. The exact contours of UAE’s role will be outlined once business-to-business discussions begin. He said that the three nations would then choose the business entities who will evaluate the feasibility and financing of the projects for the hub. Modi inaugurated also a $100-million solar power project. It is a joint venture of Ceylon Electricity Board with India's National Thermal Power Corp. India and Sri Lanka have also completed their debt restructuring processes, said Foreign Secretary Misri. Sri Lanka is owed about $1.36bn in loans by EXIM Bank of India (and State Bank of India), according to data from the Sri Lanka Finance Ministry. Colombo began debt restructuring negotiations after defaulting on its debts in May 2022. A preliminary agreement was signed with bilateral creditors Japan India and China in June last year. India and Sri Lanka have also signed pacts in the areas of digitalisation, healthcare, and security. Reporting by Uditha Jayasinghe and Shivam Patel in Colombo; editing by William Mallard
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Tariffs cause turmoil for US and Canadian farmers' machinery manufacturers
Around a recent Canadian farm show, salespeople of equipment struggled to close deals with farmers who were worried about tariffs. Some combines can cost more than $800,000. A surprise tariff hike would mean a big hit to most farm budgets. The Trump administration spared Canada's global tariffs of the Trump Administration on April 2, but it still faces tariffs for steel and aluminum exported to the U.S., as well as autos that are not compliant with United States-Mexico Canada Agreement on Trade. Farmers in Canada were still unsure as of Friday if agricultural equipment was subject to duties or Canada's retaliatory taxes. It could take several weeks to sort out all the details. Manufacturers are also pulling back on their plans to produce new combines, tractor and other farm machinery. Case IH, a Racine-based agricultural equipment manufacturer owned by the global giant CNH Industrial and headquartered in Wisconsin, informed hundreds of employees in North Dakota, Minnesota, and other states of their layoffs in March. The company didn't immediately respond to our request for comment. Farmers and salespeople interviewed said that the uncertainty scares them away from buying imported equipment from the U.S. Bill Prybylski of the Agricultural Producers Association of Saskatchewan with tens of thousand members said that farmers in Saskatchewan will be cautious when it comes to capital expenditures. He was pointing at a huge green John Deere combines during the March farm fair. In the crowded halls of the show, many farmers inspected the tracks and tires of the combine harvesters and seeders. They also viewed the rockpickers. The manufacturers were also worried about being on the wrong end of a tariff. Derek Molnar said, "We don't know where we're going with all the balls that are in the air," in front of an exhibit of bright yellow farm tools from Degelman Industries. The risk of major tariffs being imposed on a product is too high, especially when machinery purchases are often negotiated up to a full year before delivery. Gunter Jochum is a Manitoban farmer who said, "We personally decided to hold off on purchasing new farm equipment." "We decided that we would keep our combines for longer." Jochum buys equipment from all over the world, just like many farmers: Claas combine made in Germany and America; AGCO tractors, Case sprayers, and Case sprayers, both American-made; and a Canadian Bourgault seeder. Kip Eideberg is a senior vice-president at the Association of Equipment Manufacturers. The association represents John Deere, Case IH, and other heavyweights. Eideberg stated that 30% of U.S. agriculture equipment is exported with Canada being the largest foreign market. Tariffs will disrupt North American supply chain, increase costs for equipment manufacturers and threaten tens thousands of jobs that support families. Jamie Pegg said that Honey Bee, a Frontier, Saskatchewan machine manufacturer, would be forced to reduce production in order to avoid a buildup of inventory if tariffs or fears about tariffs affected sales. He said, "Inventory can kill you." Uncertainty is "creating an awful environment for business" for Canadian machinery dealers. Nancy Malone, Vice President for Canada of North American Dealers Association whose members purchase machinery, fertilizers, and other large-ticket items for local farmers, said. Malone says she's lobbying the Canadian Government to prevent any retaliatory duties from Canada against U.S. agricultural equipment. Malone predicted that paralysis would soon reign. She said, "We will wait."
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China declares that the'market has spoken after US tariffs spark a sell-off
China said that the market had spoken on Saturday, rejecting President Donald Trump's trade tariffs. It also called for Washington to engage in "equal consultation" following global markets' dramatic response to these levies. On Saturday, several Chinese trade associations from the healthcare and textiles industries to electronics issued statements calling for unity and warning of the impact that tariffs will have on the U.S. inflation rate. Guo Jiakun, a spokesperson for the Chinese Foreign Ministry, said on Facebook Saturday morning that "the market has spoken." He also shared a photo of Friday's fall on U.S. stock markets. Trump imposed additional tariffs of 34% on Chinese goods, as part steep levies that were imposed against most U.S. trading partners. This brings the total duties imposed this year on China to 54%. Trump closed another trade loophole which allowed low-value packages to enter the U.S. tax-free. China retaliated with sweeping measures on Friday. They added 34% to all U.S. products and imposed export restrictions on certain rare earths. This escalated the trade war between two of the largest economies in the world. The global stock markets plunged after China's retaliation, and Trump's comment on Friday that he wouldn't change his course. This extended the sharp losses that had followed Trump's first tariff announcement earlier in this week and marked the largest losses since the pandemic. The S&P 500 fell 9% for the week. Guo wrote, in English: "Now is the right time for the U.S.A. to stop doing wrong things and settle the differences with trading partner through equal footing consultation." China's Chamber of Commerce representing food product traders called on the "China's Food and Agricultural Products Import and Export Industry to Unite and Strengthen Cooperation to Jointly Explore Domestic and Foreign Markets." The Metals and Chemicals Traders' Chamber said that the tariffs would "increase the cost of importation for U.S. consumers and importers, increase domestic inflation, and increase the likelihood of a U.S. recession." (Reporting and editing by Edmund Klamann; Qiaoyi li, Antoni Slodkowski)
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US begins collecting Trump's 10% tariff and shatters global trade norms
Customs agents in the United States began collecting President Donald Trump’s unilateral 10% tariff for all imports of goods from many countries Saturday. Higher levies will be implemented next week on goods imported from 57 major trading partners. At 12:01 am, the initial 10% "baseline tariff" went into effect in U.S. ports of entry, airports, and customs storage facilities. ET (0401 GMT), Trump has now formally rejected the post-World War Two tariff system that was mutually agreed upon. Kelly Ann Shaw, former White House adviser on trade during Trump's initial term and a lawyer at Hogan Lovells, said: "This is by far the biggest trade action in our lifetime." Shaw said at a Brookings Institution conference on Thursday that the tariffs would evolve as countries sought to negotiate lower rates. "But this is massive. She added that this is a significant and seismic shift in how we do business with all countries on the planet. Trump's tariff announcement on Wednesday shook the global stock markets. By Friday, S&P 500 stock value had plummeted by $5 trillion, a record decline in two days. Oil and commodity prices plummeted, while investors fled into the safety of government bond investments. Australia, Britain and Saudi Arabia are among the first countries to be hit by the 10% tariff. U.S. Customs and Border Protection has sent a bulletin to all shippers indicating that there is no grace period on Saturday at midnight for any cargoes in the water. A U.S. Customs and Border Protection Bulletin provided a 51-day period of grace for cargos that were loaded on vessels or planes and transiting to the U.S. prior to 12:01 a.m. ET Saturday. The cargoes must arrive by 12:01 am. ET on May 27, to avoid 10% duty. On Wednesday at the same time, Trump's "reciprocal tariffs" of higher rates of between 11% and 50% will come into effect. Imports from the European Union will face a tariff of 20%, while Chinese products will be subject to a tariff of 34%. This will bring Trump's new tariffs against China up to 54%. Vietnam, which has benefited from Trump's first term trade war against Beijing by shifting U.S. supply chain away from China, will face a 46% tax and agreed to discuss an agreement with Trump on Friday. Canada and Mexico are exempted from Trump's new duties, as they still face a 25% tariff for products that do not meet the U.S. Mexico Canada rules of origin. Trump excludes goods that are subject to separate 25% tariffs on national security, such as steel, aluminum, automobiles, trucks, and auto parts. The list also includes more than 1,000 categories of products that are exempt from tariffs. These include crude oil and petroleum products, as well as other energy imports. They also include pharmaceuticals, uranium and titanium, lumber, semiconductors and copper. The Trump administration is looking into several of these sectors, except for energy. David Lawder reports.
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Equinor’s Activity in Norway Major Driver of Supplier Services Across Country
A new report has found that deliveries within exploration, development projects and operation of Equinor-operated fields and onshore facilities in Norway continued to grow in 2024.Equinor procured goods and services with a total value of $13.85 billion, an increase from $13.02 billion in 2023.Of this, 93% came from Norwegian suppliers located in 260 different municipalities. This resulted in an employment effect of more than 85 thousand full-time equivalents.“The report demonstrates extensive ripple effects and employment effects from Equinor’s activity in Norway. The greatest ripple effects come from operating our fields and onshore facilities, which account for more than 85 billion in deliveries. "With the Norwegian continental shelf (NCS) in a mature phase, high levels of exploration activity and maturing of new oil and gas resources are important to ensure that this continues,” said Kjetil Hove, Equinor’s executive vice president for EPN.The report was prepared by Kunnskapsparken Bodø (KPB) which analyzed actual purchases of goods and services from around 1900 suppliers and several thousand sub-suppliers in nearly 300 sectors.Development projects contributed Norwegian deliveries worth more than $3.47 billion and more than 20 thousand full-time equivalents. The largest share of this comes from subsea developments, which accounted for 31%. Johan Castberg was Equinor’s largest Norwegian field development in 2024, and accounted for 26%. The various electrification projects also created significant ripple effects with 23%.“Looking towards 2035, Equinor plans to continue to ramp up activity. On the NCS alone, we want to see 250 exploration wells, 600 more development wells, 75 subsea developments, 3000 interventions, 2500 modification projects and 50 low-pressure projects. "This robust activity level will require a cost level that yields profitability. Together with its partners and the supplier industry, Equinor must maintain to achieve competitive solutions. If we succeed with this, we’ll be able to maintain value creation on the NCS, as well as preserve high energy deliveries to Europe over the long term,” Hove concludes.Equinor’s exploration activity had deliveries amounting to $1.04 billion, an increase of just over $290 million from 2023.“Equinor’s activity generates work for suppliers all across the country, which demonstrates that this company is important for people and local communities. The competition to secure important contracts and long-term supplier relationships also helps develop competence and innovation throughout the entire supplier industry. "We have lots of small suppliers in the Norwegian supplier industry who are the leading specialists within their respective areas. We must continue to build on our strengths as an energy nation,” said Per Steinar Stamnes of Styrke on behalf of the five trade unions in Equinor; Styrke, SAFE, Lederne, NITO and Tekna.The 2024 analysis also includes operation of renewable energy facilities and low-carbon solutions, where the Norwegian supplier industry delivered services worth 170 million from the operation of Hywind Tampen and the development of Northern Lights.
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Howmet, an aircraft supplier, may stop orders if Trump tariffs are imposed.
According to a letter obtained by, Howmet Aerospace - which supplies parts for aircraft built by Airbus or Boeing - may stop some shipments in the event that tariffs announced by U.S. president Donald Trump are implemented. Howmet, based in Pittsburgh, said that it had declared a force-majeure event. This is a legal term that allows contracting parties to escape their obligations when faced with unavoidable or unpredictable external circumstances. Howmet wrote that it would be excused from providing any products or services impacted by the declared national emergency, and/or tariff executive order. Howmet refused to comment. Howmet supplies critical metal components to the $150 billion jetliner market. Boeing and Airbus have not responded to requests for comment regarding the letter. Three industry sources claim that the letter was sent to multiple companies in the aerospace sector. One source said that this was the first time a major aerospace firm had made a move like this since the announcement of tariffs. Howmet's rare declaration of legal intent does not automatically mean that the supply will be stopped or disrupted, but it opens the door for the supplier to claim they cannot meet their contracts if affected by the emergency order. The letter said that Howmet was willing to work with its customers, "including your interest in reducing the impact of the Tariff Executive Order for Howmet". Three industry sources have said that a successful declaration of force majeure would ripple throughout the supply chain, as companies try to shift the burden. This is just the latest twist in an already hard-hit supply chain for aerospace products. Some companies are now facing higher costs as a result of U.S. duties on imported steel and aluminum, along with new duties that will be imposed by other countries. Trump announced tariffs ranging between 10% and around 50% on Wednesday. This escalated a dispute which has rattled investors, and fueled fears of an upcoming recession. Two sources say that aerospace companies usually contest such maneuvers. They also add that the success or failure of Howmet’s move will depend on how unpredictable the tariffs are, especially since Trump mentioned them during his election campaign. (Reporting from Allison Lampert, in Montreal, and Tim Hepher, in Paris; editing by Joe Brock and Matthew Lewis.)
CNBC reports that Hyundai will invest $20 billion in the US.
CNBC reported Monday that Hyundai, the South Korean automaker, is planning to announce a 20 billion dollar investment in the United States. This includes a $5 billion steel mill in Louisiana.
The plan will include hiring approximately 1,500 workers to produce next-generation stainless steel, which will be used in the company's U.S. auto factories that manufacture electric cars.
Hyundai Steel is not available to comment at this time.
Both the Louisiana Governor's Office and the White House did not respond to requests for comments.
A spokesperson stated earlier this month that Hyundai Steel had considered building a steel plant in the southeast United States, but no decision had been made. The spokesperson also said that an increase in U.S. Tariffs would negatively impact the Korean steel industry.
The tariffs imposed by President Donald Trump to protect U.S. producers of steel and aluminum went into effect in the first week of this month. The tariffs were restored to 25% effective global duties on all metal imports. They also extended to hundreds of downstream metal products, such as nuts and bolts, bulldozers blades, and soda cans.
(source: Reuters)